$380 Million Dallas Tower Redo Will Have Model Units Ready Soon

Developers in the midst of downtown Dallas' biggest building reboot say they are just weeks away from having their first model apartment and hotel rooms in the project.Drever Capital Management is spending $380 million to redevelop the 52-year-old former First National Bank tower on Elm Street.The long-vacant skyscraper - renamed The Drever - is being turned into a combination of apartments, hotel rooms, office and retail."We've been doing a massive redesign of the project," said developer Maxwell Drever who purchased the tower early last year.Drever and Merriman Anderson/Architects have reduced the number of apartments in the building, upgraded the quality of the hotel and added more luxurious amenities on the outdoor roof deck."We now have 324 first class apartments," Drever said. "And we have a 218-room Thompson Hotel."Lincoln Property will lease and manage the apartments.Drever said by the end of August the models of the hotel rooms and rental units will be complete."We will have our construction loan we think by the end of August," he said. "We're looking for completion of the construction in the first quarter of 2019".So far the developer has been funding the project mostly through direct investment.Drever Capital is still lining up historic tax credits for the renovation."We are getting about $90 million in tax credits which mitigates our cost," Drever said. "By having the tax credits in addition to the tax increment finance district incentives we were able to make this a quality project."We are making the building better than it was and originally it was first class."The City of Dallas has agreed to a $50 million tax increment finance district grant that would be payable after the renovation is complete.Like other developers with downtown project, Drever Capital is looking to sell those TIF credits to investors for upfront cash.Drever is still raising funds from private investors for the equity in the project.The 52-story office tower at 1401 Elm Street was once Dallas' tallest skyscraper but was closed when tenants exited the high-rise for newer projects.Most of the work so far on the Elm Street property has gone on inside where the owners have stripped out more than 5.6 million square feet of toxic asbestos. Soon work will start to clean and restore the exterior glass and stone of the tower.Drever Capital is the second developer to attempt what's being described as one of the country's most ambitious redevelopment projects.  Continue reading...

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